Smart Money Maneuvers for a Bearish Stock Market

According to a recent statement by Bank of America's chief investment strategist Michael Hartnett, the past 19 bear markets saw an average decline of about 37% and lasted roughly 289 days.

If 2022's bear market follows this historical precedent, it should end in October, with the S&P bottoming out at around 3000 points.

While impossible to predict precisely how this one will go, practical advice from experts can help weather the storm. Moreover, these suggestions can be tailored to investors, depending on their personality, strategy, and other factors.

The stock market always has been, is now, and always will be volatile. It's an adult-level roller coaster with all the thrills and scares. For patient investors, the reward for riding out the turbulence has been quite handsome.

Wait and (Don't) Watch

Dollar-cost averaging is a method where traders increase their investment in a given stock by a set amount and at regular intervals, regardless of the share price.

Dollar-cost Averaging

This makes it a more reliable strategy than waiting until the downturn has reached its lowest point and trying to ‘time the dip.'

While some verticals, like tech stocks, can be notoriously volatile, others can be relatively resilient to market shocks. As a result, some advisors see betting on these safer industries as an effective hedging strategy.

Rock-solid Verticals?

Downturns can seem frightening to investors while they are happening. Still, from a long-term perspective, bear markets offer an excellent chance for gains.

Go Long

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